The primary reason for imposing tax sanctions on the company was that the ungrounded conclusions of the tax office regarding allegedly free of charge use by Evyap Trading Ukraine of the trademark rights of its Parent company. The company was also falsely accused of providing free advertising services to its non-resident Parent company by using its trademark to conduct commercial activity.. Such conclusions resulted in incensement of the taxable income of Evyap Trading Ukraine by four percent from its annual turnover and additional VAT obligations.
GOLAW lawyers successfully refuted the decision and proved that the conclusions of the tax office were were not based upon a proper interpretation of the Tax Code of Ukraine northe general principles of the Civil Code regarding the use of trademarks and advertising rules.
The interests of Evyap Trading Ukraine were represented by GOLAW Tax practice lawyers: Partner Iryna Kalnytska and Senior Associate Olena Sulyma.